Option Play: Silver Should Catch Up
COMEX SILVER like its counterpart Comex Gold is not paying much attention to classic fundamentals, but more focus is on investor demand due to a weaker U.S. Dollar.
MY ANALYSIS
Fundamentally, although past performance is not indicative of future results COMEX SILVER realtive to where COMEX GOLD is at, should be trading at about $25-$30/ounce. The spread between the two precious metals should narrow.
Technically, COMEX SILVER looks poised to make a BREAK-OUT and make the next wave up. See daily chart below.
WE ARE BUYING CALL SPREADS IN COMEX SILVER!!
OPTION PLAY
MARCH SILVER-$17.78/OUNCE
OPTION EXPIRY-FEB 26TH
CONTRACT SIZE-5,000 OUNCES
LEVERAGE FACTOR-$1=$5,000
BUY MARCH 20-21 CALL SPREADS
We also buy in a 3 to 1 ratio an outright PUT in case the market makes a MAJOR move against us.
FOR 25 PROVEN OPTION STRATEGIES CLICK HERE: http://www.zaner.com/3.0/mmck.asp
THE BEST SERVICE I CAN OFFER YOU AS MY CLIENT IS WHEN TO GET IN AND WHEN TO GET OUT!
Call or email me with your phone number for a detailed explanation of the strategies 312-277-0115 or mmckinney@zaner.com.
Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed.
The limited risk characteristic of options refers to long options only; and refers to the amount of the loss, which is defined as premium paid on the option(s) plus commissions and fees.
